But don’t worry - by following some simple tips and strategies, anyone can start saving money today! This guide will break down 10 practical tips, using real-life examples and easy-to-understand concepts, making it easier for you to save money in South Africa.
1. Create a Budget You Can Follow
The first step to saving money is knowing exactly where your money is going. Think of a budget as a map that guides your spending. Without it, you might spend too much in some areas and not save enough.
How to Do It:
Track your monthly income (salary, side jobs, etc.).
List your fixed and variable expenses (rent, groceries, transport, etc.).
Set spending limits for each category, making sure you save a portion of your income.
Example: If you're earning R18,000 a month and spend R6,000 on rent, R2,500 on transport, and R2,000 on groceries, you still have R7,500 to allocate to savings and other priorities.
Tip: Use apps like 22Seven or YNAB to help you track your spending.
2. Automate Your Savings
If you wait to save when you "have enough," you might never save. Automating your savings ensures that a fixed amount goes into your savings account before you spend on anything else.
How to Do It:
Set up an automatic transfer to a savings account right after you receive your salary.
Start small, like R500 or R1,000 per month.
Example: If you automate R1,000 per month into a tax-free savings account, you'll have R12,000 saved by the end of the year - without even thinking about it.
3. Cut Unnecessary Subscriptions
Many South Africans sign up for subscriptions they don't need, such as magazines, streaming services, or gym memberships they rarely use. These add up over time and eat into your savings.
How to Do It:
Review your subscriptions (Netflix, Showmax, gym, etc.).
Cancel or pause those you don't use regularly.
Consider sharing subscriptions with family or friends.
Example: If you're paying R199 for a streaming service you only watch once a month, cancel it and save that R199 each month. Over a year, that adds up to R2,388!
4. Shop Smart: Take Advantage of Discounts and Sales
In South Africa, there are numerous sales throughout the year, from Black Friday to mid-year sales. By planning your purchases, you can take advantage of discounts and save a significant amount.
How to Do It:
Wait for sales before buying big-ticket items.
Use loyalty cards and discount vouchers.
Shop in bulk for items like toiletries and non-perishable food when they are on sale.
Example: If you plan to buy a washing machine and wait for a sale that offers 20% off, you could save R1,000 on a R5,000 item.
5. Prepare Your Own Meals
Dining out or ordering takeaways may seem convenient, but it’s also expensive. Preparing your own meals can save you a lot of money in the long run.
How to Do It:
Plan your meals for the week and make a shopping list.
Cook multiple meals and freeze them to save time.
Avoid expensive takeaway options like Uber Eats or food delivery apps.
Example: A family in Pretoria spends R3,000 a month on takeaways. By cooking their meals at home and reducing takeaways to once a week, they can cut this expense by half, saving R1,500 each month, and R18,000 per year.
6. Shop from Local Vendors
Buying fresh produce or everyday items from local vendors is often cheaper and may be fresher.
How to Do It:
Visit your local farmer's market or independent vendors, instead of big chain stores.
Compare prices between supermarkets and discount stores.
Example: You might find that buying fresh vegetables at a local market in Johannesburg is 30% cheaper than at a grocery store. This means you can save hundreds of rands each month by simply shopping at local markets.
7. Use Public Transport or Carpool
Owning and maintaining a car in South Africa can be expensive due to fuel costs, insurance, and repairs. By using public transport or carpooling with colleagues, you can cut down on these costs, and also parking costs.
How to Do It:
Use trains, buses, or minibus taxis if available in your area.
Carpool with coworkers or friends to share the cost of petrol.
Example: If you spend R2,000 a month on petrol for commuting to work, carpooling with two colleagues could cut this amount down to R1,200, saving you R800 a month.
8. Build an Emergency Fund
Having an emergency fund allows you to cover unexpected expenses without going into debt. This could include medical emergencies, car repairs, or job loss. A buffer of 3 to 6 months' worth of living expenses is ideal.
How to Do It:
Start by saving a small amount, like R500 or R1,000, each month.
Keep the money in a separate savings account to avoid spending it.
Example: If your monthly expenses total R10,000, aim to save R30,000 to R60,000 for emergencies. This will ensure that you’re prepared for any financial surprise.
9. Track Your Spending and Review Regularly
Tracking your spending helps you see where your money is going and spot areas where you can cut back. It also allows you to adjust your budget if necessary.
How to Do It:
Keep a daily log of your spending.
Use apps or spreadsheets to categorize your expenses and identify patterns.
Example: You might find that you spend R1,500 a month on coffee, snacks, or small purchases. By cutting back and only allowing yourself a coffee treat once a week, you could save R1,000 a month.
10. Set Clear Savings Goals
Having a clear savings goal helps you stay motivated and focused. Whether it’s buying a house, going on a holiday, or building an emergency fund, setting goals makes saving feel more purposeful.
How to Do It:
Break down your goal into smaller, manageable amounts.
Create a calendar reminder for when you want to achieve your goal.
Example: If your goal is to save R50,000 for a deposit on a house in two years, you’ll need to save R2,083 per month. This helps you stay focused on your target and track your progress.
Start Small and Stay Consistent
Saving money doesn’t happen overnight. However, by starting small and making smart choices every day, you can gradually build up your savings. The key is to stay consistent, review your budget regularly, and make adjustments when needed. South Africa’s economic challenges may make saving feel like a struggle, but by following these tips, you can take control of your finances and work towards a secure financial future.
Questions after the interview:
At the end of an interview there is usually an opportunity where you can ask any questions you might have. This is a great opportunity to show the interviewer that you are interested in the position as well as the company. It is a good idea to prepare a few questions before the interview – this can be done while you are doing research on the company.
Your questions should show the interviewer that you are a good candidate for the position. Try and avoid questions that are based on your personal needs and preferences, for instance:
- How much leave will I get in a year?
- Will I be considered for promotion in my first year?
- When will I get an increase?
- What time can I leave in the afternoon?
These questions are inappropriate at this stage and will probably raise concerns on the side of the interviewer. Should you be the successful candidate then all these questions will be answered in your letter of appointment so don’t waste this opportunity by asking these basic questions.
If the position is an entry level job or very junior then you are welcome to ask questions in line with the position, for instance:
- Why did the previous person leave the position?
- What would the successful person be tasked to do in a typical day?
- How does this position fit into the department and / or company?
- Could you explain the company structure to me?
- Is there any further education assistance or support?
If the position is more senior then you can prepare question around the following themes:
- current issues that will face the successful candidate;
- inter-personal challenges in the department;
- any process, technology or people challenges that needs to be attended to urgently;
- key result areas that need urgent attention in the first few months;
The above information should get you started. Prepare a few questions so that you can show your worth. Good luck with your interview!
